Tasmanian Liberal Senator Jonathon Duniam said the deal with the Greens was good news for farmers.

“This is welcome news and will provide the certainty the vital horticulture and tourism sectors were after,” Senator Duniam said.

It was 18 months ago that the 32.5 per cent backpacker tax was first introduced.

The government then reduced it to 19 per cent and would later go on to compromise on a 15 per cent rate for foreign workers.

Last month, Senator Lambie introduced an amendment to see the rate dropped to 10.5 per cent, which was supported in the Senate.

But just a few hours after it was passed by the Senate last month, it was knocked back in the House of Representatives and debate continued, leaving farmers across the nation left waiting for a result.

Question time in the House of Representatives on Thursday heated up as MPs had a fiery discussion over the rate of the tax and the length of time it had taken to debate it.

With Thursday marking the last sitting day of Parliament for the year, it was a busy day in both of the houses.